How to Make a Small Press Publishing Business Plan

Even if you are the only person who will ever see your business plan, there are certain
elements that should be included. These will help make it a working document, not one written in
December and filed away for safekeeping.

A business plan serves two purposes. First, it provides you with a guide to operate your
business. Second, if you are seeking working capital it is a sales tool that will impress bankers. It
will also impress distributors and publishers that you are serious about what you are doing. An
elementary business plan includes a marketing plan, financial plan, facilities plan and personnel
plan. It should describe the following:

Introduction

Current situation

Objective

Strategies

Tactics

Forecast

Budget

Introduction

Summary. Always include a short summary of your business particularly if you intend to use it
to woo investors. It also serves as a reminder of where you propose to focus your efforts. Limit
the length of the summary to one page and include the following:

A brief description of your product and market

A brief description of your skills and competence

A summary of your financial projections

Current Situation

Company and industry. This contains background information on your company and describes
the nature and current condition of your industry. It should include the following information:

Your company

Date and state of incorporation

Principals and what role each has played in the business to date

Business purpose and highlights of progress to date

Industry

Present your view of the current status and prospects for the overall book business

Describe the principal participants and how they are performing, including growth in sales,
profits, and current market share

Market. This forces you to research your competition and opportunities to create a realistic
forecast. Include the following:

Market Definition. Describe the potential customers, their locations, their interest in your
product and seasonal changes in sales. If your book has a track record, discuss how it is viewed in
the marketplace.

Market size. Use statistics and other objective data (much of which can be found online).

Market Trends. Describe the market's growth potential. If employment is growing, why
should a publisher consider your job search book? Demonstrate that college enrollments are
growing and that your title is directed toward the growing pool of graduates.

Competition. Name and discuss all major competitors. Compare your book with your
competitors' books on the basis of price, unique benefits and other important factors.

Objective

What you will accomplish in this period in terms of unit sales, gross revenue and net
income.

Strategies

Remember the 4Ps of marketing: product, place, price and promotion. Describe broadly how
you intend to manipulate each of them strategically to reach your objectives.

Product. What will you do to improve the strategic market position your book (skills,
etc)?

Place. There are two basic ways to get your book to the intended audience: directly or
indirectly. Direct distribution strategy bypasses the traditional channels using distributors and
wholesales. An indirect strategy utilizes them.

Price. Explain why the price you have calculated will increase acceptance of your product,
produce profits and maintain or increase your market share.

Promotion. Explain how you plan to bring your book to the attention of potential
customers.

Tactics

These are the details of specific actions you will take to implement the strategies that will
ultimately achieve your objective. Again, it is helpful to categorize them by the 4Ps.

Product.

Can you make your book more detailed than competitors' works? More up-to-date?

What will you do next? A new book or planned second edition will enhance your stature
among publishers and distributors. They are more likely to take you seriously if you can
demonstrate you are not a single-title author.

Place.

If distributors or sales representatives will be used, describe how they will be attracted,
compensated and what geographic areas will be covered.

Price.

Always consider the discount the people in your distribution channel will assess.

Promotion.

Public relations. Describe how you will generate free publicity through appearances on
television and radio shows. How will you stimulate book reviews?

Sales promotion. Give examples of the sales promotional tools you will implement. What kind
of promotional literature will you develop? Four color? Black and white?

Advertising. In what media will you advertise? How will you use continuity to create
awareness of your new book? How will you use direct mail to reach your targeted lists? Include a
description of the trade shows you will attend such as the BEA or regional shows.

Personal selling. Describe how you will stimulate sales through personal presentations, book
signings and seminars you will conduct.

Forecasts

If you perform all these tactics, how many books will you sell. Here you will provide an
estimate of sales in terms of units and revenue. Identify any major customers who have made or
are willing to make purchase commitments.

Budgets

Given the revenue you expect and the costs for implementing all your tactics, create a budget.
The amount of financial information presented in your business plan will depend largely on the
stage of your financing and the amount of money you are seeking. Your plan should describe in
general terms the type and amount of funding you need.

Current Financial Statements. If your company has a financial track record you need to
provide financial statements for the last three years or since your company's inception including a
detailed breakdown of income statement categories.

Assumptions and explanations of any unusual fluctuations in income or expenses

Financial Projections. You should provide a three-year cash flow, profit and loss statement
and balance sheet projections. If your company has had a track record, the projections should be
on a quarterly basis for the first year and annually thereafter. Otherwise, the projections should be
on a monthly basis the first year, a quarterly basis the second year and annually thereafter.

Make sure you allocate for returned books and bad debt. Also take into consideration the
90-120 day payment policies of retailers and distributors. You will find yourself doing many
revisions of your financial statements. For example, some tactics may have to be delayed until the
next period if you do not project the revenue to pay for them.

It will take a considerable amount of time to create this document the first time, but it will be
well worth the effort. You will have a prepared list of actions to take to sell more books. Your
objective will be there to motivate you to work more. and your budgets will keep you fiscally
responsible. Use the typically slow time around the holidays to plan your efforts and results for
this year and beyond.